The long-delayed takeover bid for BOC Kenya has officially lapsed, marking the end of an acquisition attempt that had been embroiled in regulatory proceedings and strategic reconsiderations.
- •In a statement issued this week, BOC Kenya said Carbacid Investments PLC and Aksaya Investments LLP, who intended to acquire the firm, had abandoned their bid to acquire the industrial gas company after reassessing the transaction’s feasibility.
- •The takeover offer, initially launched in January 2021, was frozen two months later after being challenged before Kenya’s Capital Markets Tribunal.
- •The appellate body cleared the transaction in August 2024, paving the way for its completion but the interested buyers have walked away, citing that a reevaluation of the deal.
BOC Kenya, a subsidiary of Germany’s Linde Group, said it is no longer bound by obligations related to the proposed acquisition.
“The Board and Management of BOC Kenya assure our shareholders, employees, and other stakeholders that we remain focused on growth of the business,” the company said in its statement.
Carbacid, a listed carbon dioxide manufacturer, had initially sought to acquire 100% of BOC Kenya in a deal valued at approximately KSh 1.2 billion. The transaction was part of Carbacid’s expansion strategy in Kenya’s industrial gas market, but the prolonged regulatory process and evolving market conditions appear to have shifted their interest.
In November last year, Carbacid informed shareholders that it would reassess its offer and possibly update the terms of the deal after the ‘long pause’.
It is also possible that the case dampened interest in the buy-out as the petitioner, a former BOC’s Chairman—Ngugi Kiuna, attempted to halt the buy-out by arguing that minority shareholders were on the losing end due to the undervaluation of the company.
Although the Capital Markets Tribunal however dismissed the case, holding that it is up to shareholders to decide whether the acquisition price is fairly valued, Kiuna holds a significant stake—over 3 million shares—at BOC Kenya.
